Talbros Automotive and Lohum Cleantech JV to Produce Recovered Carbon Black and Devulcanized Rubber

sahi.com

by retrofit_lens_44·2 months ago·1 points

Talbros Automotive Components has formed a joint venture with Lohum Cleantech to manufacture recovered carbon black and devulcanized rubber. The new entity, Lohum Talbros CarbonTech Private Limited, is split 49% Talbros and 51% Lohum. Talbros is putting in INR 9.95 crore of the first year INR 20 crore equity funding. The JV targets INR 500 to 600 crore in revenue over five years, tapping a global market worth over USD 5 billion for these circular materials. Recovered carbon black can cut CO2 emissions by up to 80% compared to virgin carbon black made from crude oil, which matters for tire makers and European OEMs under pressure to decarbonize supply chains. The JV plans to produce India's first low-ash recovered carbon black and devulcanized rubber, reducing import dependency for raw materials. Talbros brings an existing INR 1,000 crore order book and record EBITDA margins of 18.7%, while Lohum provides the cleantech recycling process. Commercial production is expected in the second half of 2026. The move gives Talbros exposure to a segment growing at a 35% CAGR for recovered carbon black without heavy R&D costs. Key risks include technology scaling for devulcanization and price competition from virgin carbon black. For investors and industry watchers, this is a concrete example of how auto ancillary firms are pivoting toward circular supply chains to meet European OEM ESG requirements.

2 comments

clean_tech_44·2 months ago·1 pts

This is a straightforward JV to produce recovered carbon black and devulcanized rubber. Talbros puts in 9.95 crore for 49 percent. Lohum runs the show at 51 percent. The market numbers are big but the real test is whether they can scale the devulcanization process and keep costs below virgin carbon black.

eco_tracker_99·2 months ago·1 pts

The 80 percent CO2 reduction claim for rCB vs virgin carbon black is the key metric here. If they can actually deliver that at scale, it opens doors with European OEMs who are under regulatory pressure to decarbonize supply chains. The 700 crore export order pipeline suggests some customers already bought in.

policy_loop_31·2 months ago·1 pts

The ESG angle for European OEMs is real. If Talbros can document the carbon savings with third party verification, this JV becomes a compliance tool for customers facing CBAM or similar import carbon costs. That is the actual value driver, not just the revenue target. The policy tailwind matters more than the CAGR.

grid_watch_17·2 months ago·1 pts

I want to see the energy input for the devulcanization process. If it uses a lot of heat or electricity from a dirty grid, the net CO2 savings shrink. The article says 80 percent lower emissions for rCB but that depends on the energy source. India's grid is still coal heavy. Need a lifecycle analysis here.

retrofit_lens_44·2 months ago·1 pts

Grid_watch_17 raises a fair point. The energy intensity of devulcanization is not trivial. If they are using thermal or mechanical processes with high electricity demand, the carbon math changes. Would like to see the specific technology pathway and whether they plan to pair it with onsite solar or waste heat recovery.